Saturday, September 7, 2019

Richer Sounds Essay Example for Free

Richer Sounds Essay The main business objectives for the company are to increase sales and market share, increase profits, new product developments and employee career development. Sainsburys has these business objectives to help meet its overall objective which is stated in the companys mission statement. They also want to increase profits by reducing expenditure. SAINSBURYS MAIN ACTIVITIES Sainsburys consists of both secondary and tertiary sectors, which means that they manufacture their own goods and they also sell products and provide services through the internet which makes them a tertiary sector as well. Due to the fact that Sainsburys manufactured their own goods; most of the money goes back to them and isnt really shared out between with the manufactures. Sainsbury have a bakery and fish section in all their stores, they also produce their own bread and pastry. Due to Sainsbury doing very well in the marketing industry they also started selling stationary and electrical goods, which will boost up their sales. Sainsbury offer a club card, which means people who shop at Sainsbury get points for shopping there, these points can later be exchanged for cash or vouchers. By offering a club card Sainsbury are able to attract more customers and by attracting more customers they will increase in sales, which then will lead to an increase in profits and shares. COMPARISON Both of the businesses have similar aims, which is that they want to give excellent service to their customers. The main difference between the two businesses is that Richer Sounds isnt as well known as Sainsburys is which gives Sainsburys a great advantage over them. This means that Sainsburys will have more customer awareness than Richer Sounds. Both of the businesses have different objectives. Sainsburys wants to increase sales by reducing expenditure, this means that Sainsburys already knows how they going to achieve their objective. Richer Sounds want to expand their company, they want to open 4 to 6 stores in the current year, they want to develop their audiovisual cinema range and they want to keep their customer service level above 90%, they do this by asking customers to fill in questionnaires at the till. The two objectives show that Sainsburys are concerned more about their profits than customers and Richer Sounds are concerned about their customers more than their profits. Both businesses also range in different activities, whereas Richer Sounds sell hi-fis and home cinema systems etc, Sainsbury sell mainly food products but they also sell non-food related goods as well such as stationary and electrical goods, giving them another great advantage over Richer Sounds. Both business sell goods from stores, online and orders can be made over the phone as well. RICHER SOUNDS OWNERSHIP LOCATION Richer Sounds are a Public limited company. They are a limited company so that if they come across any financial problems their owner and founder Julian Richer wouldnt be responsible for any debts. Even though Richer Sounds are a plc they are unlisted from the stock exchange, this is because they dont want to lose any control of the company to shareholders, and Richer Sounds want to have full control over their company. Also if they do become listed in the stock exchange they will have to have certain requirements such as File full accounts, Have a minimum issued share capital of i 50,000 etc. They will have to abide by all the legal requirements under the various Companies Acts and the Finance Act, which means the directors, will have to take up certain legal duties, such as to make sure that proper accounting records are kept. Being a unlisted public limited company is suited to them because they are a large company and by being unlisted they will have one less thing to worry about, which is shareholders, because they wont have any. The business is located mainly in the UK, they have a couple of stores outside the UK as well and their main warehouse is in Lancashire. Richer Sounds first store was in central London at the London bridge walk. When choosing locations Richer Sounds consider two main points which are; to make sure that there are a lot of customers nearby who would actually be interested in purchasing from them, and to keep it as far as possible from another Richer Sound store, so that they dont end up sharing customers instead of attracting new ones. Their stores are essential for customers because customers wont have to look every where for their stores since their often on the corner of a road, which makes it really visible to see, and their mainly nearby a parking, so that customers wont have to worry about finding parking space on the road. Richer Sounds consists of only the tertiary sector which means that they only sell products; they dont manufacture the products themselves or make it from the raw materials. Richer Sounds could make more money if they actually manufactured their own products like Sainsburys does, this way they wont have to pay the main manufacturer a bit of the profit for selling the goods.

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